Today's consumers have many bills our parents didn't have: cell phones, cable TV, satellite radio, high-speed internet, not to mention all the new must-have electronic equipment: digital cameras, iPods, PDAs and flat-screen TVs.

Factor in rising mortgage rates, grocery bills, utility prices and other expenses, and many Americans are finding it difficult to live within their means.

Personal debt can easily get out of control, and many Americans are turning to credit counseling and settlement companies as a way out. These companies can provide practical advice to help you manage your debt. They also can renegotiate the terms of your credit agreements and arrange to pay off your debts. However, the industry is filled with and companies seeking to prey on those in desperate financial condition.

Companies nationwide are targeting consumers with poor credit histories.

They say they can clean up your credit so you can buy a car or home or even get a job. The truth is, they usually can't deliver. After you pay them hundreds or thousands of dollars in fees, they usually destroy your credit, and some simply vanish with your money.

The tactics of some companies result in lawsuits being filed against you by your creditors.

Georgia laws strictly regulate this industry, but these laws are unknown by many lawyers. In Georgia, debt-settlement companies cannot charge up-front fees or monthly fees of more than 7.5 percent of the amount you pay them for distribution to your creditors. In addition, the law requires that all funds be disbursed to creditors within 30 days of receipt. Finally, companies are required to keep your funds in a separate trust account, to maintain certain insurance coverage, and to provide annual audits to the Governor's Office of Consumer Affairs.

Many companies in the industry attempt to find loopholes that avoid state law. Others are simply unaware of the law or blatantly defy it. You have the right to file a private legal action against a company that has overcharged you or mishandled your account in violation of the law. The company might be obligated not only to refund all fees you have paid, but also to pay you an additional $5,000 in restitution. If you believe your debt-settlement company has failed to follow the law, you should consult a lawyer.

Here are a few tips to help you select an appropriate company to counsel you through you debt crisis:

- Don't commit to the first budget-counseling firm that reaches you by unsolicited mail, e-mail or telephone calls.

- Don't make payment or sign up for a program before reviewing the literature

- Don't choose a company that charges large up-front fees in exchange for promises that they can't keep. If you have a serious amount of debt there will be no easy and quick solution.

- Find a local, nonprofit company that doesn't charge large fees -- the phone book is a good source of information.

- Speak to at least two or three companies before selecting one so that you can compare prices and discuss strategies for resolving your debt.

- Check with the Better Business Bureau (www.bbb.org) to see whether the companies are registered and legitimate enterprises.

Christopher A. Cosper is an is a lawyer at Hull, Towill, Norman, Barret & Salley in Augusta. Business leaders and economic officials interested in writing for In Your Words can contact Damon Cline at damon.cline@augustachronicle.com or (706) 823-3486.